Regulation Correspondent, Europe
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Apr 13, 2015

Tribunal slashes record UK fine against Deloitte over MG Rover

LONDON, April 13 (Reuters) – A British tribunal has slashed
a record 14 million pound ($20.5 million) fine on accountancy
firm Deloitte in relation to work done for carmaker MG
Rover Group, saying a key rule needed clarifying.

The case is being closely watched by auditors as it partly
hinges on the need for accountants take the public interest into
account in their work. Deloitte, one of the world’s top four
accountants, had argued it was unclear what regulators meant by
this.

Apr 13, 2015

Regulators in race to strengthen bond market before rate hikes

LONDON, April 13 (Reuters) – The European Commission will
meet bond market players in the next few weeks to discuss how to
avert potentially disorderly market “flash crashes” when
interest rates start to rise, EU and industry sources said.

Although plans by the European Union executive for a Capital
Markets Union to help companies access market funding include
measures to ensure adequate liquidity, warnings that fixed
income trading could be disrupted have added a sense of urgency,
with some asset managers wanting quick action.

Apr 7, 2015

Bank of England to keep close eye on UK current account deficit

LONDON (Reuters) – Britain’s large current account deficit could damage market sentiment towards the country if the economic environment deteriorates, the Bank of England said on Tuesday.

Minutes from the BoE’s Financial Policy Committee meeting on March 24 showed members were worried about Britain’s current account deficit, noting it was high by historical standards.

Apr 1, 2015

UK financial markets watchdog to bare more teeth in policing competition

LONDON, April 1 (Reuters) – British banks and markets are
bracing themselves for a fresh onslaught from their regulator
after it assumed extra powers to police competition in financial
markets on Wednesday.

The Financial Conduct Authority (FCA), launched in 2013 to
shake up supervision after the 2007-09 financial crisis
highlighted failures, already has competition as a core aim.

Mar 31, 2015

EU lawmakers back rules to stop rigging of market benchmarks

LONDON, March 31 (Reuters) – European Union lawmakers have
given their initial backing to a draft EU law making it harder
to rig market benchmarks, while adding changes to help quell
U.S. concerns about the rules.

The draft was proposed after banks were fined for attempting
to manipulate the Libor interest rate benchmark and currency
markets.

Mar 31, 2015

Exclusive – EU presidency wants to ditch ban on proprietary trading at banks

LONDON (Reuters) – European Union plans to ban banks taking market bets with their own money should be scrapped to avoid crimping the flow of funds needed for economic recovery, an EU document showed on Tuesday.

The bloc’s executive European Commission has proposed a draft law to ban proprietary trading at banks and force lenders to isolate other forms of risky trading to help keep the financial system stable.

Mar 31, 2015

EU presidency wants to ditch ban on proprietary trading at banks

LONDON, March 31 (Reuters) – European Union plans to ban
banks taking market bets with their own money should be scrapped
to avoid crimping the flow of funds needed for economic
recovery, an EU document showed on Tuesday.

The bloc’s executive European Commission has proposed a
draft law to ban proprietary trading at banks and force lenders
to isolate other forms of risky trading to help keep the
financial system stable.

Mar 30, 2015

Banks call for rethink of global plans for capital “floors”

LONDON, March 30 (Reuters) – The world’s top banks and other
market participants want regulators to rethink plans that would
set a new minimum level of capital requirements even when risks
from high quality loans are low.

Core capital buffers held by banks are determined by
assessing the likelihood of a loan defaulting, but regulators
have questioned such “risk-weighting” calculations after finding
wide variations in capital to cover similar loans.

Mar 30, 2015

Bank of England to stress test banks for global slump scenario

LONDON (Reuters) – Britain’s seven biggest lenders will have to show they can cope with a global economic slump triggered by a sharp slowdown in China and a crash in the euro zone in this year’s round of stress tests conducted by the Bank of England.

Britain decided to introduce annual stress tests for its banks after the 2007-09 financial crisis which required taxpayers to pump 66 billion pounds ($98 billion) into Royal Bank of Scotland (RBS.L: Quote, Profile, Research, Stock Buzz) and Lloyds Banking Group (LLOY.L: Quote, Profile, Research, Stock Buzz).

Mar 27, 2015

Central banks call for lower capital requirements on top-quality pooled debt

LONDON (Reuters) – Bonds based on high-quality loans should benefit from lower capital requirements to kick-start the market in Europe, the Bank of England and European Central Bank (ECB) said on Friday.

The two central banks were responding to plans from the European Union’s executive, the European Commission, to revive the asset-backed securities (ABS) market to improve funding for companies.

    • About Huw

      "Huw is based in London and covers European regulatory issues and global rulemaking bodies such as the G20, Financial Stability Board, IOSCO, IASB and the Basel Committee. He has covered EU regulation in Brussels, the emergence pan-European stock markets, and has also been a Wall Street reporter in New York."
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